If the median income for someone with an associate's degree is $9,100 higher annually than for someone with a high school degree,and the cost of schooling for the two years is $10,000 each year,at what point does the investment into the education break even?
A) 1.9 years
B) 2 years
C) 2.1 years
D) 2.2 years

Question

Quizplus · Accepted Answer

To break even, the additional $9,100 in median income must offset the cost of schooling, which is $10,000 per year. Thus, the equation is:

2.1 years * $9,100/year = $19,000 (rounded up)

After 2.1 years of having an associate's degree, the additional income earned would offset the cost of schooling, resulting in a net gain of $1,900. Therefore, the best choice is C) 2.1 years.

If the Median Income for Someone with an Associate's Degree